How do I define my savings goals?

To begin with, you need to know why you’re saving and what’s achievable. Talking to an Ask Acorn financial advisor will help you answer these important questions.

The first step in setting savings goals is being clear about your current financial situation. To do this, you should subtract your mortgage and loan payments and other regular expenses, from your total income. Then sort your savings aims into ‘essential and ‘optional’ goals.

‘Essential’ would cover important costs such as future education fees, necessary home improvements etc. ‘Optional’ savings goals could include holidays or car upgrades. What’s in either category depends on you.

Finally, because your priorities and personal circumstances will probably change over time, you should review your savings goals regularly.